Texas Instruments Incorporated (TXN) Q3 2025 Financial Results Summary

By
QuoteReporter
-
0
2

Texas Instruments (TXN) Q3 2025 Financial Results Summary

Texas Instruments Incorporated (TI) (Nasdaq: TXN) released its third-quarter financial results on October 21, 2025. Below is a summary of the key financial metrics and highlights from the report.

Key Financial Metrics

  • Revenue:
  • Q3 2025: $4.74 billion
  • Q3 2024: $4.15 billion

  • Change: +14% year-over-year

  • Operating Profit:

  • Q3 2025: $1.66 billion
  • Q3 2024: $1.55 billion

  • Change: +7% year-over-year

  • Net Income:

  • Q3 2025: $1.36 billion
  • Q3 2024: $1.36 billion

  • Change: 0% year-over-year

  • Earnings Per Share (EPS):

  • Q3 2025: $1.48
  • Q3 2024: $1.47
  • Change: +1% year-over-year

Cash Generation

  • Cash Flow from Operations (Trailing 12 Months):
  • Q3 2025: $6.90 billion
  • Q3 2024: $6.24 billion

  • Change: +10% year-over-year

  • Free Cash Flow (Trailing 12 Months):

  • Q3 2025: $2.42 billion
  • Q3 2024: $1.47 billion
  • Change: +65% year-over-year
  • Free Cash Flow as a percentage of revenue: 14.0% in Q3 2025; 9.3% in Q3 2024.

Shareholder Returns

  • Total Cash Returned to Shareholders (Trailing 12 Months):
  • Total: $6.56 billion

  • Change: +26% year-over-year.

  • Dividends Paid:

    • Q3 2025: $1.24 billion
    • Q3 2024: $1.19 billion
    • Change: +4% year-over-year.

  • Stock Repurchases:

    • Q3 2025: $119 million
    • Q3 2024: $318 million
    • Change: +253% year-over-year.

Outlook

  • For Q4 2025, TI projects:
  • Revenue range: $4.22 billion to $4.58 billion
  • Earnings per share: $1.13 to $1.39

Segment Performance

  • Analog Segment:
  • Revenue: $3.73 billion, up 16% from $3.22 billion year-over-year.

  • Operating Profit: $1.49 billion, up 13% from $1.32 billion year-over-year.

  • Embedded Processing:

  • Revenue: $709 million, up 9% from $653 million year-over-year.

  • Operating Profit: $108 million, down 1% from $109 million year-over-year.

  • Other:

  • Revenue: $304 million, up 11% from $275 million year-over-year.
  • Operating Profit: $69 million, down 47% from $129 million year-over-year.

Financial Summation

  • TI continues to demonstrate a strong operational performance with revenue growth across all end markets.
  • Cash flow capacity is bolstered with a reported cash flow from operations of $6.90 billion, highlighting the robustness of TI’s business model.
  • Investment continues in R&D ($3.9 billion) and capital expenditures ($4.8 billion), showcasing TI’s commitment to innovation and capacity expansion.
  • TI actively returned $6.56 billion to shareholders over the past year, consisting of dividends and stock repurchases. The company declared a quarterly dividend of $1.36 per share, reflecting a 4% increase from the previous year.

Conclusion

Texas Instruments’ Q3 financial results reveal solid growth and operational strength, particularly in revenue and cash generation, alongside a consistent commitment to returning value to shareholders through dividends and share repurchases.

Consolidated Statements of Income 2025 2024
Revenue $4,742 $4,151
Cost of revenue (COR) 2,019 1,677
Gross profit 2,723 2,474
Research and development (R&D) 518 492
Selling, general and administrative (SG&A) 457 428
Restructuring charges/other 85 —
Operating profit 1,663 1,554
Other income (expense), net (OI&E) 62 131
Interest and debt expense 141 131
Income before income taxes 1,584 1,554
Provision for income taxes 220 192
Net income $1,364 $1,362
Diluted earnings per common share $1.48 $1.47
Average shares outstanding: Basic 909 913
Diluted 914 920
Cash dividends declared per common share $1.36 $1.30
Consolidated Balance Sheets September 30, 2025 September 30, 2024
Cash and cash equivalents $3,311 $2,589
Short-term investments 1,875 6,163
Accounts receivable, net of allowances of ($21) and ($23) 2,062 1,862
Raw materials 431 393
Work in process 2,460 2,081
Finished goods 1,938 1,822
Inventories 4,829 4,296
Prepaid expenses and other current assets 1,799 962
Total current assets 13,876 15,872
Property, plant and equipment at cost 17,314 15,464
Accumulated depreciation -4,966 -3,662
Property, plant and equipment 12,348 11,802
Goodwill 4,362 4,362
Deferred tax assets 1,089 941
Capitalized software licenses 237 229
Overfunded retirement plans 251 184
Other long-term assets 2,841 1,931
Total assets $35,004 $35,321
Current portion of long-term debt $500 $1,049
Accounts payable 779 794
Accrued compensation 724 721
Income taxes payable 79 108
Accrued expenses and other liabilities 1,036 1,014
Total current liabilities 3,118 3,686
Long-term debt 13,546 12,844
Underfunded retirement plans 125 117
Deferred tax liabilities 60 54
Other long-term liabilities 1,528 1,352
Total liabilities 18,377 18,053
Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741 1,741 1,741
Paid-in capital 4,410 3,813
Retained earnings 52,369 52,304
Treasury common stock at cost – September 30, 2025 – 832; September 30, 2024 – 829 -41,744 -40,395
Accumulated other comprehensive income (loss), net of taxes (AOCI) -149 -195
Total stockholders’ equity 16,627 17,268
Total liabilities and stockholders’ equity $35,004 $35,321

RELATED ARTICLESMORE FROM AUTHOR